ED arrests Jaypee Infratech’s Manoj Gaur in homebuyer fraud case; homebuyers see ‘ray of hope’

The Case

ED initiated investigation against Jaypee group on the basis of multiple FIRs registered by the Economic Offences Wings (EOW) of Delhi and Uttar Pradesh Police, based on complaints filed by homebuyers of Jaypee Wishtown and Jaypee Greens projects, alleging criminal conspiracy, cheating, and criminal breach of trust against the company and its promoters.

According to an ED statement, it has been alleged that the funds collected from thousands of homebuyers for construction and completion of residential projects were diverted for purposes other than construction, leaving the homebuyers defrauded and their projects incomplete.

“ED investigation revealed that out of approximately Rs 14,599 crore collected by Jaiprakash Associates Limited (JAL) and JIL from homebuyers (as per claims admitted by NCLT), substantial amounts were diverted for non-construction purposes. The funds were siphoned off to related group entities and trusts, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd. (JHL), and Jaypee Sports International Ltd. (JSIL). It has also been revealed during the investigation that Manoj Gaur is the Managing Trustee of Jaypee Sewa Sansthan (JSS), which received part of the diverted funds,” ED said.

Earlier on May 23, 2025, the ED had carried out searches at 15 locations linked to Jaypee Infratech Ltd., Jayprakash Associates Ltd., and their associated entities. During the operation, officials seized cash worth over Rs 1.7 crore, along with financial records, digital data, and property documents registered in the names of promoters, their family members, and group companies.

The raids were conducted across Delhi, Mumbai, Noida, and Ghaziabad as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002.

“The investigation has established the central role of Manoj Gaur in the planning and execution of the fund diversion through a complex web of transactions within the Jaypee Group and its associated entities,” the enforcement agency said.

The insolvency and takeover by Suraksha Group

The root of the matter traces back to JIL’s flagship township Wish Town in Noida (launched in 2010-11), where thousands of flat buyers continue to await possession. More than 27,000 units in JIL projects remained undelivered when insolvency proceedings began.

Jaypee Infratech went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.

The group had to deliver 32,691 units to buyers under various housing projects in Noida, of which 4,889 units were completed before the start of insolvency proceedings. As many as 27,802 units remained incomplete by August 2017.

During the bankruptcy process, 7,278 units were completed, leaving 20,524 units to be delivered as on March 31, 2019, and latest 20,097 flats including 17,756 in Jaypee Wish Town remains to be delivered.

In March last year, the NCLT approved the bid of the Mumbai-based Suraksha group to buy JIL.

Homebuyers Speak Out

Homebuyers, long frustrated by delays, said the arrest does not equate to immediate relief—but it does strengthen their case.

“We booked our flat in 2011 and were promised possession by 2014–15. We are still waiting,” said Akash Virmani, a homebuyer in Jaypee Wish Town.

Another homebuyer said that Gaur’s arrest was inevitable and it sends a message that builders should not cheat homebuyers as they invest their hard-earned money in their projects.

Wish Town homebuyers Deepak Sahni, who said that things are yet to improve even after the takeover, raised similar concerns.

“Even after Suraksha’s takeover of JIL, we see timelines shifting. Today’s arrest gives us hope—but we need action with regards to completion of our homes,” he said.